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Home›Garment Factory›Frequent power shortages and high fuel prices lead to reduced overtime in most industries

Frequent power shortages and high fuel prices lead to reduced overtime in most industries

By Guillermo Porter
March 11, 2022
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Frequent power shortages, high fuel oil prices have led to an increase in fuel oil consumption in the majority of industries and led to reduced overtime in most industries according to industry committees on March 10.

Since there were frequent power outages, the majority of industries have to rely on generators. But, in using generators, the increase in fuel oil prices as well as the purchase of fuel oil has caused difficulties and hence overtime should be reduced according to one of the industrial committee members of Shwe Linban.

“Although there have been power outages, most industries are operating as usual. There is no industry shut down due to power shortage. We submitted a letter to Myanmar Petroleum Trade Association to sell fuel oil for each industry. But, we have not yet received a response letter. Oil prices are high and it is difficult to buy them freely on the open market. If it continues like this, industries will face difficulties. There are large cost differences between electricity charges and fuel oil charges. Thus, industries reduce their operation. Now they couldn’t work overtime. The most difficult thing is that we don’t know when the electricity will be cut off. As majority of industries are operating in normal times, it will be much easier if they know when the blackout will occur. The inability to buy fuel oil has caused more problems than electricity shortages. If it continues like this, things will get worse,” said a member of Shwe Linban’s industrial committee.

“The operations of the industries depend solely on electricity and some days they have three hours of electricity. Fuel oil prices are skyrocketing at present, which will lead to increased expenses. So far, no industry shuts down due to power failure. But most industries are struggling. Even a few seconds of power outage can cause tons of damage to some industries such as plastic production industries,” a member of Shwe Linban’s industrial committee continued.

“The sharp rise in heating oil prices has caused many challenges for industries. Industries are expensive on fuel oil prices. Our industry is operating as usual, plus overtime,” Hlaing Tharyar Township Garment Factory Manager said.

On social media pages, some industries have written that they will temporarily close as electricity shortages worsen.

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